For 2017, major geopolitical events have yet to unleash their full effect on regional and global economic activity. For starters, Prime Minister Theresa May of the United Kingdom has will likely invoke Article 50 of the Lisbon Treaty to begin Brexit proceedings.
This will have far-reaching ramifications for the UK, the EU and their trading partners. As such, many lucrative trading opportunities abound with the GBP/AUD which is currently at 1.6870, down 0.2744%. The 1-year performance of this currency pair shows a depreciation of 19.10%. That trend is likely to continue in 2017. The pressures facing the sterling are mounting, as financial companies (banks, investment brokerages, mortgage companies, et al) are contemplating relocation from the City of London to Europe.
How to Understand Market Dynamics?
Nowadays, there are a myriad of options available for investing. There are the traditional options such as institutional brokerages where hefty fees and commissions are levied on individual trades, and there are contrarian investment options such as binary options trading, Forex trading, personal trading etc. One of the most popular modern day investment opportunities is binary options. There is no need to be concerned about fixed fees per trade, commissions, and monthly management charges. Plus, underlying assets do not need to appreciate by a fixed amount to generate profits. Conventional trading requires the financial asset to appreciate for profits to be generated. With binary options, the underlying asset can appreciate or depreciate, and sizable fixed profits can be generated in the process. The only thing that matters is that the investor calls it right from the get-go. The size of the price movement is irrelevant – it’s the direction that matters with binary options trading.
Any effective binary options strategy necessitates a clear understanding of the implications of such moves. It should be known from the outset that there is no single-strategy that works best in every situation. When you make the decision to invest in a currency, commodity, index, or stock, you are risking the known for the unknown. It is this risk/reward dynamic that encourages investment in the first place. Nonetheless, Australian traders are encouraged to read up on the underlying factors that move asset prices. To this end, a comprehensive education (financial blogs, financial articles, expert insights, demo trading accounts, glossary, economic calendar) is essential. There are many different types of traders, including high-risk traders and low-risk traders. In any event, it is always advisable to observe the performance of your chosen asset before you invest real money in it. A demo trading account is the best way to do this. Experts advise traders to stick to the golden rule: no more than 2% of your available capital should be allocated to any individual trade. That way, if the trade sours your losses will be limited.
How to Compile an Investment Portfolio?
The first order of business is to pick financial assets that you understand. Perhaps you’re interested in gold, iron ore, silver, Microsoft, Alphabet, Glencore, GBP/AUD, NZD/AUD or any other asset. Watch the performance of that asset over time, and practice trade before you invest for real. Try different types of strategies with your chosen assets and eventually you will settle on a strategy or a set of strategies that work best for you. It is always sensible to make multiple low-risk trades with small investment amounts. Once you start to get the hang of it, you can start to increase the size of your trades and the frequency of your trades. In all instances, make use of a full range of binary options trading resources. These will guide you to more successful outcomes.